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Methanol Chemicals Company announces the Board of Directors ’recommendation to reduce the company’s capital and then increase the company’s capital by issuing priority rights shares. Today, Sunday, October 11, 2020 03:19 PM
|an introduction||Methanol Chemicals Company announces that the Board of Directors decided in its meeting held on Sunday 02/24-1442 AH corresponding to 10/11-2020 AD to recommend to the extraordinary general assembly to reduce the company’s capital and then increase it according to the following details:|
|Board meeting date||24-02-1442 corresponding to 11-10-2020|
|The capital before the reduction||1,206,000,000|
|The capital after the reduction||876,960,850|
|Capital Reduction Percentage||% 27.28|
|The number of shares before the reduction||120600000|
|The number of shares after the reduction||87696085|
|The reason for reducing the capital||Restructuring the company’s capital to extinguish the accumulated losses|
|Method of capital reduction||By canceling 32,903,915 shares of the company’s shares, 1 share will be reduced for every 3,665 shares|
|The effect of capital reduction on the company’s financial, operational, or organizational performance, obligations, operations, or performance||There is no effect of reducing the company’s capital on its financial liabilities.|
|Date of sale||The end of the second trading day following the convening of the extraordinary general assembly in which the capital will be reduced, and whose date will be determined later.|
|Approvals||The recommendation to reduce the company’s capital is subject to the approval of the relevant regulatory authorities and the extraordinary general assembly|
|Appointing a financial advisor, and submitting a capital reduction request file to the Authority||At the same meeting, the Board of Directors decided to appoint a financial brokerage company (Wasatah Capital) as a financial advisor regarding reducing the capital and increasing the capital, and it will also be announced in a timely manner upon submitting the company’s capital reduction application file to the Capital Market Authority to obtain its approval.|
|additional information||The company’s board of directors also recommended in the same meeting on 02/24/1442 AH corresponding to 10/11-2020 AD to the extraordinary general assembly and after completing the capital reduction process, the company’s capital should be increased by offering priority rights shares at a value of 480 million riyals. |
The approval of the extraordinary general assembly on the process of increasing the company’s capital by issuing priority rights shares is conditional on the approval of the extraordinary general assembly on the proposed reduction of the capital.
The main objective of the company is to increase the capital to raise its financial solvency and reduce borrowing rates and costs incurred from them.
Provided that the eligibility to subscribe to shareholders who own shares on the day of the extraordinary general assembly that decided to increase the capital by offering priority rights shares and whose names appear in the issuer’s shareholders register at the Depository Center at the end of the second trading day following the date of the extraordinary general assembly, which will be determined It will be due later, God willing.
We would also like to point out that the process of increasing the capital is conditional on the approval of the relevant official authorities and the extraordinary general assembly.
As mentioned above, the brokerage firm (Wasatah Capital) will be the financial advisor for the capital increase process.
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